Brazil Refuses To Buy European Bonds, Dashing Hopes For A BRIC-based European Rescue

Tyler Durden's picture

About a year ago, we speculated that as part of the ongoing currency warfare between Brazil and the "developed" world, its finance minister Guido Mantega would keep his trade surplus trump card until the moment of biggest impact. That moment has come, after the financial head (with the Playboy-posing daughter) just told Europe to take a hike. "I believe that European countries do not need funds from Brazil to buy bonds. Brazil is not considering it," Mantega told reporters in Brasilia. "They have to find solutions to the European problems within Europe." And with Brazil out, it is certain that China will not step up over fears of appearing weak and needing to provide vendor financing to its biggest export partner. Unfortunately for Europe this means that at least one component of the revised SPIV: that which foresees public investment from third parties into the EFSF (a new twist proposed only last week), can now be safely forgotten, bringing us back to page one and the entire 5x levered CDO structure which as has been explained numerous times, is Dead on Arrival. There is, however, one loophole. "Mantega said Brazil would be willing to provide financial help via the International Monetary Fund." Which is rather laughable considering that by IMF, one typically refers to, at least in polite society, Uncle Sam. Then again, with a French woman (and one who until recently was solely reponsible for the grave French financial condition) in charge, it is easy to lose sight and to be, there is that phrase again, baffled by irrelevant bullshit even as following the bailout money always lead to the same old source.

Reuters reports:

Brazil on Tuesday rejected the idea of buying European bonds to help ease the euro zone's debt crisis, casting doubt on a plan for major emerging market economies to offer fresh funds for the continent's rescue.


European leaders had floated the idea that developing nations including Brazil and China could provide funding to buy Euro zone bonds, which would help lower yields and ease pressure on countries such as Spain and Italy.


But Brazilian Finance Minister Guido Mantega echoed calls for Europe to solve its own burgeoning fiscal problems, saying Brazil had no intention of making such purchases.


Brazilian officials earlier this year floated a plan to buy European debt along with members of the BRICS group of nations, which includes Russia, China, India and South Africa, but backed away after tepid response from the group.

It's not just Brazil:

India and Russia are not interested in offering more funds to help Europe while there was not evidence China planned to chip in, a high ranking official from an emerging market country told Reuters. The official said major emerging powers believe Europe is not doing enough to find a solution to the crisis amid internal bickering.

That said, as we reported yesterday, the IMF is already preparing to activate desperate measures to bail out the world, once Europe, inevitably, fails in pulling itself out of the quicksand by its bootstraps. Needless to say that with the countries who can actually afford to participate in the rescue backing out, the onus of bailing out the world, once again falls squarely on the shoulders of the American middle class. And with the political climate already "challenged" as is, it will be quite interesting to observe as the GOP incorporates the topic of the hundreds of billions of taxpayer capital that will be exposed to first loss in order to make sure that Europeans do not experience the kind of dire austerity that will see Italians retiring at 67 instead of 65, in the hourly presidential debates.

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knukles's picture


Deus ex machina terminus incarnatus

Ahmeexnal's picture

Even Zimbabwe turned Merkel down.

Stick a fork on that porker, she's done.

LetThemEatRand's picture

I heard she even asked Tony Montana for help.  His response --  "You know what? Fuck you! How about that?"

SGS's picture

Soooo, when does NATO invade Brazil for ahhhh, nothing, or oil or democracy or boogeemen or a hunch?

knukles's picture

They got oil?
They got gold?
They get invaded.

But wait, closer to home, there's Venezuela!
Just perfect for an implementation of the Monroe Doctrine.
Commie fuck suppressing his people, limiting freedoms, muzzling the press and opposition, Russian adviser boots on ground.


s2man's picture

And MUCH closer than Iraq.

Shvanztanz's picture

The only reason we invaded Iraq was to STOP oil production. Supply and Demand Economics 101 mother fuckers!. Who banked during the crisis? Exxon Mobile. The idea that we invaded that country to GET oil was disinformation to put Oliver Stone and the CIA to shame. 


Weapons of Mass Destruction = Weapons of Mass Production


Where do you think the Saudis, Iran AND Venezuela stood on the invasion? Right where they wanted to be: on the sidelines.


Who was pissed? France, because Total had an under the table deal with Saddam, to side step "oil for food."


Dig it, fuckers.

Bicycle Repairman's picture

What is wrong with Guido Mantega?  The guy walks on stage, gives a definitive answer and then walks off.  He should do the "Euro" instead.  Call numerous press conferences, and make ambiguous statements or spout non sequiturs.  Schedule a meeting where a resolution will be announced, then end the meeting abruptly with no resolution, except to announce another meeting.  Rinse and repeat.  Leak contradictory statements to the media.  Maximize your face time.  Stretch your 15 minutes of fame for as long as you can.  Let your comments move the market and plan your trades accordingly.  Share this knowledge with your "friends".  C'mon Guido, play the game.  Do the "Euro".

Hephasteus's picture

Ya. I also here that Soros is bankrolling occupy wallstreet and george bush will send you a check to call him a low life motherfucker.

Mugatu's picture

Plenty of hot Supermodels come from Brazil.  If we ever invade another country again, lets hope we do it for a good reason - like hot Supermodels.  Did I mention that Brazil seems to have a lot of hot Supermodels?  

I got an idea, lets invade Brasil.


Biosci's picture

Are you taking crazy pills?

Hansel's picture

I know you were thinking of me Mugatu, but I am not from Brazil.

Mugatu's picture

I invented the piano key necktie, I invented it! What have you done? You've done nothing! NOTHIIIING!

zhandax's picture

You don't need to invade Brazil to get the hot supermodels up here....look at what the rejuvenation of SoBe did for Swedish models in the early 80's.  Just get a party started under some palm trees.....they'll show up.

Raging Debate's picture

Ya Mugato but I heard the drugs are not as good in Brazil. Not enough to feed the Pharam industry.

TruthInSunshine's picture

The not so surprising answer to all of this mess is that they don't want to fix the economic problems plaguing the world; they want to exacerbate these crises and then exploit them in order to consolidate wealth, power, political control, to re-order the global pie, and to increase dependance of average civilians on the teet of 'benevolent' government.

This is not only how they retain control, but this is their blueprint for gaining even more control.

Mayer Rothschild knew that loaning money to governments and kings was more profitable and carried far less risk than loaning money to private individuals. Not only were the loans bigger, but they were secured by the nation's taxes.

So why has our government, and that of every developed nation (and most nations, for that matter) allowed quasi-private or fully private central banking institutions to seize control of the ability to issue money, even going so far as to thwart the U.S. Constitution and the few Presidents who dared to challenge the globalists?

Follow the money. Political leaders have been bought off, bribed, blackmailed and threatened  via a full array of means and techniques ("Sure we can get your son an executive position at [insert prestigious corporation here]"; "Sure we can support your bid for re-election," "We'll make a call and are fully confident young Jonathan will be accepted at Yale/Oxford," "It sure would be tragic if the media found out about your carnal sexual trist with those women not your wife [that we hired]/It sure would be tragic if something happened to your children/You need dirt on a business/political rival?...You're in luck, because we just happen to have proof that they...").

These people worship wealth and power, employ mercenaries and jackals, and there's no level they won't stoop to in order to try and retain the ability to control the money supply, using it as a tool of social, military and political control, to further enrich themselves.

They have fully captured governments, militaries, commerce and even religious institutions.

Wealth, Power & Greed are their gods.

I'm sure that I'm probably just a 'conspiracy theorist,' though, and that we didn't have the American Revolutionary War because we were printing our own money [colonial script], depriving the British Crown of what it thought was its empirial right to harvest the colonies, and I'm sure Napoleon was on crazy pills, also, when he fully acknowledged exactly how, why and through who power flows (which is consistent with the above). /sarc

The Money Masters

www.moneymasters .com


The Money Masters explains the history behind the current world depression and the bankers’ goal of world economic control by a very small coterie of private bankers, above all governments. 

The Central bankers’ Bank for International Settlements (BIS) in 1988 in the “Basel I” regulations imposed an 8% capital reserve standard on member central banks. This almost immediately threw Japan into a 15 year economic depression. In 2004 Basel II imposed “mark to the market” capital valuation standards that required international banks to revalue their reserves according to changing market valuations (such as falling home or stock prices). The US implemented those standards in November, 2007. In December 2007 the US stock market collapsed and credit began drying up as banks withheld loans to comply with the 8% capital requirement as collateral valuations began to drop. The snowball effect of tightening credit, which reduces economic activity and values further, which resulted in further tightening of credit, etc., has produced a worldwide depression which is worsening.

Those capital standards have not been relaxed despite the crushing effects on the world economy* the credit contraction it requires has caused. Why? Because:

“The purpose of this financial crisis is to take down the U.S. dollar as the stable datum of planetary finance and, in the midst of the resulting confusion, put in its place a Global Monetary Authority [GMA - run directly by international bankers freed of any government control] -a planetary financial control organization”

- Bruce Wiseman

*The U.S did modify these rules somewhat a year after the devastation had taken place here, but the rules are still fully in place in the rest of the world and the results are appalling.

The powers of financial capitalism had a far-reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole… Their secret is that they have annexed from governments, monarchies, and republics the power to create the world’s money….- Prof. Carroll Quigley renowned, late Georgetown macro-historian (mentioned by former President Clinton in his first nomination acceptance speech), author of Tragedy and Hope. “He [Carroll Quigley] was one of the last great macro-historians who traced the development of civilization…with an awesome capability.”

– Dr. Peter F. Krogh, Dean of the School of Foreign Service (Georgetown) 

The Two Step Plan to National Economic Reform and Recovery 1. Directs the Treasury Department to issue U.S. Notes (like Lincoln’s Greenbacks; can also be in electronic deposit format) to pay off the National debt. 
2. Increases the reserve ratio private banks are required to maintain from 10% to 100%, thereby terminating their ability to create money, while simultaneously absorbing the funds created to retire the national debt.   These two relatively simple steps, which Congress has the power to enact, would extinguish the national debt, without inflation or deflation, and end the unjust practice of private banks creating money as loans (i.e., fractional reserve banking). Paying off the national debt would wipe out the $400+ billion annual interest payments and thereby balance the budget. This Act would stabilize the economy and end the boom-bust economic cycles caused by fractional reserve banking.     

 For the full text of the Act click here to read the      MONETARY REFORM ACT.

“Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.”  – Sir Josiah Stamp, Director of the Bank of England (appointed 1928). Reputed to be the 2nd wealthiest man in England at that time.


quacker's picture

She'll have Bernanke handcuffed in the bathroom as she takes apart Geitner with a chainsaw.

"Now the leg eh"

TheFourthStooge-ing's picture

Could it be that more countries are discovering that their scrota aren't empty and deciding not to play the game any longer?

Iceland, being the first, should be renamed the Arctic Republic of Sackistan.


ISEEIT's picture

Dear Td's

You fuckers are honestly the most amusing fuckers ever. You are fucking hilarious. ZH TV would be a killer. How to do it without being ruined would be the trouble.

How do you live well without being corrupted?

On second thought. No TV.

Largeness = corrupt.

Stay small and nimble and real.

Yeah, I'm a bit drunk; Gunna say it anyway..

I love you guys and I love what you do.

Thank you for doing it.

LetThemEatRand's picture

Enter the Bernanke, stage right.....

DrunkenPleb's picture

Too soon... there needs to be a real crisis before he can put on his cape and come flying to the rescue. Why appear on stage at all for the Europeans, when you can keep sliding them greenbacks behind the scenes?

Ahmeexnal's picture

Why would Ben rescue the euro? That makes no sense. Ben will let the euro sink. As europe burns in hyperinflationary purgatory, some countries will go back to their previous currencies.  Others will find it much easier and cheaper to just...adopt the dollar. Just like Zimbabwe did. Just like Ecuador did. Just like Spain, Ireland, Portugal, Greece and others will.  That will give the greenback a much needed oxygen tank. I'd say that will give the dollar a bit over a year.  On december 2012 the dollar (last fiat standing) will implode, as the Maya predicted.

jekyll island's picture

Ah my friend, the Bernank will do whatever his handlers tell him.  If the owners of the Fed have significant exposure to EU contagion, Ben will protect their positions with US taxpayer funds.  Isn't that why the Fed was created in the first place? 



LetThemEatRand's picture

I agree he won't help directly and he'll do everything possible to conceal what he's doing, but he's going to want to save the TBTF banks that are exposed to CDS on European debt.  

TwelfthVulture's picture

During the Lehman/Bear/AIG fiasco I vaguely recall hearing that the value of all CDS's was something crazy like 40 times ALL global wealth.

Does any one here know what the current value is?  What the value of Euro "exposed" CDS is?

I know that Dodd/Frank was supposed to "fix" this problem, but how real are any of the numbers?  Is it still a big guesstimate?

jekyll island's picture

Conservative estimates have put it at $600 trillion, there are rumors it could be almost twice as much.  

TwelfthVulture's picture

Thanks.  Is that the global or Euro number?

Ghordius's picture

it's an imaginary number anyway

it's just there so that the MegaBanks can claim that they either get their will or they will go collectively broke

if you are with a terrorist in the elevator and he has dynamite strapped on, is it relevant if it's 100 pounds or one megazillion pounds?

BAN CDS (Again)

knukles's picture

I thought that Marla said she hadn't been fucked like that since grade school?

wisefool's picture

That what made it into the film. The authentic quote was "I want to abort your baby"

Biosci's picture

"I want to have your abortion"

Au Shucks's picture
Well, if you want to talk about the Mayan calendar, the 2012 date is one that was created by the media surrounding this date.  As Carl Calleman believes, the Mayan calendar actually ends in 3 days.. that's right, THIS Friday 10/28/11.  When the kiddies are celebrating the Pagan beliefs next Monday, they will be doing so at the beginning of the new age.  And as you're probably well aware, the Mayan calendar is a representation of the evolution of human consciousness.  Those who have actually read more on the topic than what they could gleam from a movie trailer can tell you that the historic mapping of the Mayan calendar is perfection at its finest.  With such a track record, it is a stretch for any informed person to suggest that it might fail in its historic accuracy only in the final days. 

I, for one, am a firm believer in the calendar's accuracy... whatever its source, whatever its purpose, it is unmistakable that the calendar has accurately predicted the exact economic, societal and spiritual woes which face humanity today.  And best of all, these woes are here to awaken those who have been blind to them their whole lives and as a harbinger of change on a paradigmical scale (if that's a word). Not changes in figure heads, or in money function, or in governmental structure... no, changes that change the discussion all together.

Let us see what happens.  Whatever the case, the endgame is here for debt/usary slavery.

legal eagle's picture

Bullish for incense and candles

Hard1's picture

Dude, the mayans simply ran out of temple to go on writing dates on. People are making far fetched asumptions regarding that.

Shvanztanz's picture

Dude, fuck that Mayan shit, the Church of Ridiculeze has been predicting the coming of Ridiculum for less than ten seconds. Ridiculeze promised, before he even existed, that whatever happened, it would be fucked up, but it would be precluded by a torrent of of chattering and blathering and pontificating. 

Element's picture

has been predicting the coming of Ridiculum for less than ten seconds.


"... has been predicting the cumming of Ridiculum for less than ten seconds."

The new-world version's translation is incorrect, the original manuscript translation reveals that he actually had a premature ejection issue, and the coming of the Ridiculum, should in fact be translated as the, "cumming of the ejectulatum".  This puts quite a different pallor on the whole matter of doctrinal discourse and has caused considerable interpretive controversy regarding the associated passages, and some glaring doctrinal inconsistencies.

However, both translations maintain that 2012 will be an, "epic ka-ka-poo-poo shitstorm"  - See The Book of the Great Profit Barosso, Chpt 6 v 66, and The Third Epistle to Ollie, Chapt 13 v 1939 thru 1945.

Apparently the First and Second Epistles to Ollie were lost in the mail, hence the Third Epistle, so their contents remain unknown, but there were curious tangential referrences to "The Great Kasar Ejeculation" that follows the ka-ka-poo-po shitstorm.

Raging Debate's picture

Au Shucks. I studied it. Marvelous! And they only needed two variables but were those two variables multiplied by other variables they could have told you what happened after 2012. As you mention its good news but I caution people to realize the world progress will accelerate faster toward our evolutionary destinty but it won't be perfect until man can more adequately replicate consciesness. 4d has no time. It is Inner Space, a whole new place to explore.

Clinically immortal means there is no instinctual necessity for hoarding or other physical impulses lingering from our primate existance. 4d economic model means their will be no reason to mandrake, create false-flags and lie which are necessities in the 3d pyramid.

This time was different and it was the response by leadership which we can justly decry and debt repudiate. Haircuts have to happen and yes they effect me. But so be it.

DavidAKZ's picture

Look at the csv file Bloomberg managed to get out of the FED under FOIA to see who got bailed out during 2008. Anser a lot of Euopean banks  to keep the USD hegenomy going.

jekyll island's picture

Too bad about Brazil not wanting to help bail out Europe.  Can't say I blame them, but they got bailed out by the US when their economy went kaput to the tune of $200 billion.  Guess they don't want to buy a round for the bar this time. 


disabledvet's picture

Well his boss use to wear black pajamas and sport an AK...doesn't sound very giving. We'll see if the concept of "fat Tuesday coming early" is true. Somehow I just can't get away from America's first statesman (Ben Franklin) who said "we should all hang together or most assuredly we will all hang separately." indeed where would Brazil be today...but I digress

Unprepared's picture

The US bailed out its "own" banks

Executioner's picture

I believe that as much as many other countries on this God's marble, Brazil was pretty much plundered by US beyond any usure practice "lending" by the IMF  US, my friend.

chump666's picture

Yeah it's DOA. 

BrocilyBeef's picture

Congrats to the people of Brazil. Smarter move.

Duke of Con Dao's picture

I should have put that Mategna babe into this vid mash. 

maybe not... too Latin. this has more of a film noir hook. 

so here's Cain's Mark Block squaring off against Jean Paul Belmondo:

Politics Noir at it's best...

Schmuck Raker's picture


The Playboy-posing daughter is only about a '6' for a Brazilian chica.

Lack-o-afro. IMO

LawsofPhysics's picture

Bullish for emerging markets, well duh.